Tag Archives: Coca Cola

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3 Solid Dividend Stocks for the Long Haul

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By Steve Symington, The Motley Fool

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Stable, dividend-paying stocks may not be as exciting as their more volatile non-dividend cousins, but there’s a reason world-class investors like Warren Buffett love them.

Over the long term, dividends are undoubtedly the lifeblood behind overall stock market returns. Take a look at the gains over the past decade for both the S&P 500 and the Dow Jones Industrial Index, with dividends (“Total Return“) and without them:

Source: ^SPXTR data by YCharts.

Of course, even without dividends, the indexes still turned in a respectable performance. However, the inclusion of dividends added a whopping 51% and 40% to the Dow and S&P 500’s returns over the past 10 years, respectively.

So which dividend stocks should you buy for the long haul? Here are three possibilities:

This ain’t Monopoly money
Despite trading near 52-week-highs, I’m convinced toy maker Hasbro has what it takes to keep shareholders happy for decades.

In addition to being the name behind such perennial hit games as Magic: The Gathering, Twister, Monopoly, and Battleship, Hasbro is also poised to benefit by creating merchandise for every blockbuster movie from entertainment giant Disney, so you can bet it was happy when Disney announced plans for multiple new Star Wars movies following its acquisition of Lucasfilm late last year.

In the meantime, Hasbro can look forward to renewed sales from next year’s new installment of the Transformers movie franchise, and long-term investors can rest easy collecting a solid 3.7% dividend.

Clean profits from a dirty business
If you’re looking for another durable long-term business, look no further than garbage disposal and recycling expert Waste Management .

As the owner of 283 active landfills, 17 waste-to-energy plants, 131 recycling plants, 95 landfill gas projects, and six independent power production plants, Waste Management is North America‘s largest recycling and waste services provider and boasts an enviable moat, which many investors believe is second only to Coca-Cola.

While the stock doesn’t look particularly cheap at nearly 22 times trailing earnings, its 3.8% dividend should help in the long run.

Last but not least, thanks to the initiation of its inaugural dividend late last year, I’m happy I can now include  in the list of my favorite dividend stocks. After all, the graphics chip specialist currently trades for less than 14 times trailing earnings and had a jaw-dropping $3.73 billion in cash on its balance sheet at the end of its most recent quarter. This, for those of you keeping track, represents nearly half NVIDIA‘s entire market capitalization.

NVIDIA has been incredibly busy lately, building a moat of its own as it strives to become a one-stop shop for all things graphics processing. In addition, its recently announced Tegra 4i is poised to give competing mobile chips from the likes of Qualcomm a run for their money. If NVIDIA can steal any meaningful market share from Qualcomm in the mobile segment alone, it’s a safe bet that patient, long-term investors will be richly rewarded as both the share price and dividend …read more

Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

CORRECTING and REPLACING Interbrand Appoints Tim Newby as Chief Executive Officer of BrandWizard

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By Business Wirevia The Motley Fool

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CORRECTING and REPLACING Interbrand Appoints Tim Newby as Chief Executive Officer of BrandWizard

NEW YORK–(BUSINESS WIRE)– Third graph, second sentence of the release dated April, 8, 2013 should read: including P&G, Citibank, Coca-Cola, and McDonald’s (sted including Proctor & Gamble, Altria, Nestle, and McDonald’s). Also, the fourth graph, second sentence should read: marchFIRST (sted matchFirst).

The corrected release reads:

INTERBRAND APPOINTS TIM NEWBY AS CHIEF EXECUTIVE OFFICER OF BRANDWIZARD

Interbrand, the world’s leading brand consultancy, announced today that Tim Newby has been named Chief Executive Officer of BrandWizard, the digital arm of Interbrand that combines brand and Digital Asset Management (DAM) to bring technology solutions to brand management challenges.

Newby will be based in BrandWizard’s New York office and will report to Lee Carpenter, Interbrand’s North American CEO, and Jez Frampton, Interbrand’s Global CEO.

Most recently, Newby was Chief Operating Officer of MarketForward, a Publicis Groupe-owned company that provides customizable digital brand management tools and strategic consulting services. Newby joined MarketForward in 2004 and oversaw efforts for many of its prominent clients, including P&G, Citibank, Coca-Cola, and McDonald’s. During his tenure, Newby led the worldwide operations of BrandGuard, the company’s core enterprise-level digital management tool.

Prior to his role at MarketForward, Newby held senior leadership positions at several top advertising and technology innovation agencies where he managed global teams across key offers and services spanning sales, strategy, account management, and technical support. He has also held senior Partner positions at OgilvyOne Worldwide and marchFIRST, formerly Whittman-Hart.

“Tim brings the unique combination of business and technological acumen that is required to lead a company like BrandWizard,” said Jez Frampton, Interbrand’s Global Chief Executive Officer. “I have the utmost confidence that with his successful track record developing and growing client relationships and developing innovative technological solutions, he will prove to be a vital asset to the firm and set the stage for the next phase of BrandWizard’s growth.”

Newby succeeds BrandWizard CEO Robin Rusch, who also founded brandchannel.com, Interbrand’s award-winning news resource that covers brands and marketing.

Newby holds an MS in Communications Systems from Northwestern University and a BA in Public Relations from Illinois State University.

About Interbrand

Founded in 1974, Interbrand is one of the world’s largest branding consultancies. With nearly 40 offices in 29 countries, Interbrand’s combination of rigorous strategy, analytics, and world-class design enables it to assist clients in creating and …read more

Source: FULL ARTICLE at DailyFinance

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Coca-Cola and Celebrity Chef Ingrid Hoffmann Partner to Bring the Fiesta Home This Cinco De Mayo

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By Business Wirevia The Motley Fool

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Coca-Cola and Celebrity Chef Ingrid Hoffmann Partner to Bring the Fiesta Home This Cinco De Mayo


The Cooking Channel star shares authentic Mexican recipes and party tips that will bring families and friends together this holiday

ATLANTA–(BUSINESS WIRE)– The Coca-Cola Company and Ingrid Hoffmann are coming together to provide families with simple recipes and fun party ideas to celebrate this Cinco de Mayo. Inspired by her new book “Latin D’Lite” and Coca-Cola’s wellness programs, Hoffmann created meal solutions to help families make smarter choices this holiday.

“With our 126-year history of bringing people together, we know that great food and a good party bring friends and families even closer,” said Lauventria Robinson, VP Multicultural Marketing, Coca-Cola North America Group. “With the help of Ingrid Hoffmann, we’re taking a different approach to Cinco de Mayo and hope to inspire families to spend time together, and host their very own Mexican fiesta filled with fun, family-friendly activities.”

Cinco de Mayo is celebrated with parades and street festivals in cities and towns across the United States. This holiday commemorates Mexican culture and history; it provides the opportunity for families to both celebrate Mexico‘s rich traditions and start some new ones, too.

“Any excuse is a good excuse to spend time with family and friends – and I like to do it in a healthy way,” said Hoffmann, host of The Cooking Channel’s Simply Delicioso. “I am excited to share some of my favorite Mexican recipes and fun party ideas to help families bring the fiesta home, and enjoy a delicious meal.”

This year, as part of the effort to provide everyone in the family with an authentic experience, Coca-Cola, Fanta and Sprite made in Mexico Fiesta 24-packs will be available at participating retailers for a limited time. These refreshing beverages may be paired with a variety of Mission® Mexican food products including tortillas, chips, salsas and dip. The beverage and food bundle offers instant redemption coupons.

The My Coke Rewards® digital platform features party planning tips, cooking videos, recipes in English and Spanish, and a variety of prizes. Consumers are encouraged to enter My Coke Rewards codes and Mission UPC codes for a chance to win daily prizes, including Coke and Mission products for a year.

There are many ways to celebrate …read more

Source: FULL ARTICLE at DailyFinance

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Dow Gains, but Alcoa Falls Short

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By Jeremy Bowman, The Motley Fool

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After spending most of the day in negative territory, the Dow Jones Industrial Average made a late run to finish up 48 points or 0.3% as optimism about the beginning of earnings season seemed to take over late in the day. Following multiple reports last week about a slowing job market, Wall Street seemed happy to shift its focus elsewhere as earnings reports begin to roll in.

Alcoa kicked off the quarterly reports in style, gaining 1.8% during the trading session, and reporting overall profit growth of 59% to $149 million or $0.13 a share, even as revenue continued to slide, falling 3%, on weak aluminum demand. Still, the manufacturer managed to lift earnings per share with growth in its downstream segment, which sells products such as aluminum wheels and aircraft parts. EPS topped expectations of $0.13 a share, but sales came in a bit short. Shares were down 1.3% in after-hours trading.

Elsewhere on the Dow, Coca-Cola jumped 2% as separate reports reaffirmed the growth potential in the energy-drink industry. Wells Fargo said that energy drinks should push overall growth in the beverage industry while UBS put in its own vote of confidence in the industry, saying that Monster Beverage had strong upside potential in international sales. After hours, Monster, once thought of as a buyout target for Coca-Cola, also announced a $200 million share-buyback program. Shares of the energy-drink maker were up 4.7% today.

Johnson & Johnson led the Dow laggards today, finishing down 1.1% after getting downgraded by JPMorgan Chase. Michael Weinstein dropped his rating from “overweight” to “hold,” saying that the health-care giant’s stock trades at an 8% premium to its intrinsic value and that he expects the company lower its guidance soon.  

Shares of General Electric finished up 0.8%, but it sent Lufkin Industries, a maker of oil pumps and similar transmission products, up 37.6%, after agreeing to acquire it. GE will pay about $3 billion for Lufkin, a move that gives the conglomerate increased exposure to the fast-growing shale oil-and-gas industry, and will make GE Oil & Gas the company’s third largest unit. The deal is expected to close in June.

Finally, outside the Dow, CEO Ron Johnson was finally ousted from J.C. Penney following one of the more tumultuous years in retail history. Johnson’s brand revamp never took and cost more the company more than a quarter of its sales, and the retailer has already taken several steps to undo his decisions, such as bringing back markdowns. Former CEO Mike Ullman, who led the company for nearly seven years before being replaced by Johnson, will be back at the helm. Investors seemed uninspired by the decision, as shares were off 9.9% after hours.

Materials industries are traditionally known for their high barriers to entry, and the aluminum industry is no exception. Controlling about 15% of global production in this highly consolidated industry, Alcoa is in …read more

Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Monster Still Has Upside in the Energy Drink Business

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By Travis Hoium, The Motley Fool

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The energy drink business has exploded over the past decade and Monster Beverage has been one of the biggest beneficiaries. The good news today is that according to analysts at Wells Fargo there’s still room for growth. A research report released today was optimistic about energy drinks driving beverage growth and that’s good news for Monster.  

Holding off the big dogs
What’s different about the energy drink business from other drink markets is that Coca-Cola and Pepsi have had very little success getting into it. They’re usually able to muscle in and fight off smaller rivals — in this case, Monster, 5-Hour Energy, and Red Bull — but the energy business is playing out differently. These companies have been able to hold off the big dogs and grow into an expanding market and building strong brands along the way.

Source: MNST Revenue Quarterly YoY Growth data by YCharts.

The growth has been amazing, but for investors looking to buy the stock the good news is that Monster is trading at a much more reasonable price than it has in the past. If Wells Fargo is right and the energy drinks business continues to grow, this price could be a steal, especially if the company can expand into new markets. Monster is trying to be more than just a giant can of energy, adding new flavors and even a line of “Rehab” drinks. That has broadened appeal and kept growth at a high level. 

First-quarter earnings will be out in May and that’s when we’ll find out just how much fuel is left in this growth engine. 

More on Monster

The stakes are high for Monster Beverage these days. The stock had been nothing short of a rocket, but recent developments have sent shares spiraling downward. Health scares sparked a number of investigations at the state and federal level into the energy drink’s role in several fatalities. With the company’s value slashed in half, investors are wondering whether Monster Beverage is a value or a bust in the fast-growing energy drink category. Find out now in our brand-new premium research report, which details all the ins and outs you need to know about Monster Beverage. Click here now to claim your copy and start reading today.

var FoolAnalyticsData = FoolAnalyticsData || []; FoolAnalyticsData.push({ eventType: “TickerReportPitch”, …read more

Source: FULL ARTICLE at DailyFinance

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Pop the Champagne — Earnings Season Is Here

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By Travis Hoium, The Motley Fool

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For investors, the seasons aren’t marked by the changing leaves or first snowfall; earnings season is kicked off every three months by aluminum maker Alcoa . Today, after the closing bell, Alcoa opens first-quarter earnings season, and investors are approaching it with skepticism today. Stocks dropped in early trading, but as of 3:15 p.m. EDT the Dow Jones Industrial Average is up a meager six points, while the S&P 500 has gained 0.29%.

Alcoa is always the first major company to report quarterly earnings, and it’s viewed as a bellwether for the rest of the season. Analysts are expecting Alcoa to report $5.89 billion in revenue and an $0.08 per-share profit. An earnings beat would have investors in a good mood tomorrow, and a miss would have them singing the blues. Beyond the numbers, be on the lookout for management’s comments about future demand, because investors are always looking for clues about what the next earnings season will look like.

Johnson & Johnson dropped 1.5% to lead the decliners today. The stock was downgraded by analysts at JPMorgan Chase — though, ironically, they also increased their price target from $77 to $83. Analysts can have a short-term impact on stocks, but the market won’t care about this rating for long, and I would pay more attention to Johnson & Johnson’s earnings release next week than I would to this rating.

Coca-Cola jumped 1.7% today after Wells Fargo said energy drinks would help grow the beverage industry overall. Growth of the beverage industry is great, but Coca-Cola has had a hard time gaining significant market share, so it may miss out on some of that upside. Next week, Coke will release first-quarter earnings, so we’ll learn more about beverage growth and what Coke is going to do about the energy craze.

Coca-Cola’s wide moat has helped provide its shareholders with superior gains in the past, but the company faces some new threats to its continued market dominance. The Motley Fool recently compiled a premium research report containing everything you need to know about Coca-Cola. If you own or are considering buying shares in the company, you’ll want to click here now and get started!

var FoolAnalyticsData = FoolAnalyticsData || []; FoolAnalyticsData.push({ eventType: “TickerReportPitch”, …read more

Source: FULL ARTICLE at DailyFinance

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Dow Continues to Slide, but the Big Boys Try to Prop It Up

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By Jessica Alling, The Motley Fool

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Despite making some progress to recoup losses on Friday, the Dow Jones Industrial Average is back in a downward dip this morning. Though it is recovering from its initial fall, the index remains at a 47-point loss at 11:15 a.m. EDT. Without much economic news to help it inspire investors, the Dow must rely on its component stocks to do the hard lifting.

They have some help though, coming from Asia, as the new Japanese stimulus plan took effect today. The Bank of Japan purchased 1.2 trillion yen in bonds from municipalities with maturities dating five years out. The country announced recently that it would be doubling its balance sheet through new bond purchases.

Dow’s strongest players today
Disney is by far the strongest component this morning, up 0.83%. It was reported last week that the media and entertainment giant will begin layoffs in its studio and consumer products divisions over the next few weeks as a result of an internal company review. Though it is unclear how many layoffs will be completed, it shows that the company is consistently looking for ways to make itself leaner. Last week Disney announced that the video game division of its recently acquired LucasFilm, LucasArts, would no longer be producing games.

Coca-Cola is also up this morning, with a 0.81% gain. No big news for the beverage company so far this morning, but with its continued push to expand internationally, investors are happy to jump on board the dividend aristocrat. Coca-Cola has plans to spend $700 million in Indonesia over the next three years — marking the Asian country as the next big emerging market. With a rising middle class, the company is hinging its success on more available disposable income in the country. The beverage behemoth still remains the Dow’s least-shorted stock.

Ahead of its earnings announcement that will kick off the new earnings season tonight, Alcoa is on the rise. Up 0.49% this morning, the company’s earnings may set the tone for the broader materials market, and even the Dow itself. With a lot resting on its Chinese sector, investors will want to pay attention to how the company reports its results from the Asian country. Overall, Alcoa was forecasting earnings growth of 9% to 10% for the year. Weakened aluminum prices have created mixed opinion on whether that range is realistic.

Not helping
The biggest loser this morning is Johnson & Johnson , with a drop of 1.5%. Just a few days after a huge courtroom win, the Band-Aid giant was downgraded by JPMorgan to neutral. Though the analyst downgraded the company, JPM‘s price target for J&J was raised to $83 from $77, which makes perfect sense given that the stock currently trades around $80.

Is bigger really better?
Involved in everything from baby powder to biotech, Johnson & Johnson’s critics are convinced that the company is spread way …read more

Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

The Dow's 5 Most Loved Stocks

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By Sean Williams, The Motley Fool

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It was truly an amazing first quarter for the Dow Jones Industrial Average . The U.S. markets’ oldest continuing index gained 11.3% for the quarter and set multiple all-time record highs.

As you might expect, when the market has such a rapid run higher, investors can get quite skeptical. This is why I examined the five most hated Dow components from a short interest perspective last week. Some I proposed have been unfairly bet against, while pessimists in other Dow components have every reason to be skeptical. Today, I suggest we turn the tables and look at the Dow’s least short-sold, and thus most-loved, companies.

Company

Short Interest as a % of Shares Outstanding

Coca-Cola

0.77%

General Electric

0.84%

Merck

0.87%

ExxonMobil

0.90%

Procter & Gamble

0.91%

Source: S&P Capital IQ.

Just as we did last week, we’ll first take a look at why short-sellers might be avoiding these five names and then pass judgment on whether investors have anything to worry about.

Coca-Cola
Why are short-sellers avoiding Coca-Cola?

Do investors have a reason to worry?

  • Absolutely not! Coca-Cola has a 51-year streak of raising its dividend and also has the global diversity and product line to survive any economic downturns without much pain. About the only true concerns Coca-Cola investors need to keep their eyes on are rapidly rising food costs (i.e., sugar), and unfavorable currency translations overseas, which can reduce Coke’s bottom-line profits.

General Electric
Why are short-sellers avoiding GE?

  • Some companies are still recovering from the financial crisis of 2008-2009, but GE‘s recovery is well under way. In its fourth-quarter results, it announced a record $210 billion backlog, delivered 8% organic industrial growth, and demonstrated continued health in its GE Capital financial arm, whose tier 1 common ratio rose to 10.2%. In addition, GE‘s plans to split up its energy business into three segments have investors excited that shareholder value will soon be unlocked.

Do investors have a reason to worry?

  • Short-sellers probably have very little control over GE until it splits up its energy business. Organic growth in nearly all segments has been far too strong to continue to bet against GE, and its dividend growth since it slashed its payout during the recession has also been phenomenal. There are still plenty of reasons to like GE here.

Merck
Why are short-sellers avoiding Merck?

Business, Finance, Occupation & Industry

Apple Deserves a Place in the Dow

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By Dan Caplinger, The Motley Fool

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The Dow Jones Industrial Average includes 30 of the most prestigious U.S. companies in the world, with most of them leaders in their respective fields. Yet the Dow doesn’t include Apple — the biggest company in the world throughout most of 2012 and still the biggest technology company by a wide margin. Here are just a few of the many reasons Apple deserves to take its place in the Dow.

1. A dominant brand.
Apple has done an amazing job of bolstering its brand presence around the globe in recent years. Just last year, Interbrand ranked Apple as the second most valuable brand in the world, finishing second only to Coca-Cola and earning the distinction of seeing its brand value more than double in just a single year to more than $76.5 billion. By demonstrating its desire to give people exactly what they want — often before they even know it — Apple has captured a nearly fanatical loyalty among many of its customers.

Source: Apple Press Info.

2. A lucrative dividend.
Every stock in the Dow pays a dividend, but until recently, Apple didn’t. Last year, though, Apple paid its first quarterly dividend in 17 years, and its 2.5% dividend yield equates to about $10 billion in dividend payments to shareholders on an annual basis. Apple has clearly established itself as a stock not only for growth investors but for those seeking income as well.

3. A history of product innovation.
The company that created the iPod, iPhone, and iPad has revolutionized the way people deal with computing devices. Some question whether the death of Steve Jobs put a halt to Apple’s innovative tradition, but Apple hasn’t stopped seeking new ways to bring valuable and exciting products to market, and the company has retained its top ranking from management consultant Booz & Company despite spending a fraction of what competitors Samsung and Microsoft pay for research and development.

Source: Apple Press Info.

4. The ability to split its stock.
The reason most often cited for Apple’s not being in the Dow is that its share price so high that it would create a severe imbalance in the price-weighted average. Yet while Apple hasn’t split its stock lately, it has done so in the past, with its most recent split coming in 2005. If a spot in the Dow were on the line, CEO Tim Cook would probably jump at the chance to do a stock split.

5. The perfect opportunity for the Dow to add a stock at a cheap valuation.
The Dow has historically had a mixed track record in its timing in adding new companies. It added Microsoft near its tech-bubble peak, as the stock performed dismally during the ensuing tech bust. But with Apple now 40% off its highs, the managers of the Dow have a chance to avoid the buy-high …read more

Source: FULL ARTICLE at DailyFinance

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Slow Job Growth Puts Brakes on the Dow

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By Matt Thalman, The Motley Fool

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Market participants have been hit with poor jobs data three days in a row this week, and each seemed to be worse than the one before. On Wednesday, ADP released their report, which indicated that the private sector added only 158,000 jobs. Thursday, the Labor Department published weekly jobless claims that rose to 385,000 initial claims last week. And today, the Bureau of Labor Statistics announced that only 88,000 new jobs were created in the month of March.

The three reports combined paint a really bad picture of the jobs marke,t and caused the market, in general, to decline today. The Dow Jones Industrial Average lost 40 points, or 0.28%, while the S&P 500 performed slightly worse, losing 0.43%. The NASDAQ, unfortunately, took third place, after it lost 0.65% of its value.

Technology stocks really took it on the chin today, and to read about a few of the big losers, click here. Or to learn about some of the other Dow losers, continue reading below.

Shares of American Express fell 2.14% today on the heels of the poor jobs data. When the country is in a state of high unemployment and a poor jobs market, consumers tend to spend less money or, at the very least, borrow less money. That means credit cards are often put in the back of the wallet, and cash is used more frequently. With lower transaction counts, and less borrowed money to charge interest on, the credit card company may likely post lower revenue, resulting in lower profits.

The Home Depot was also hit hard by the jobs report today. Shares lost 0.89% of their value after the report indicated that retail trade employment declined by 24,000 in the month of March, and 10,000 of that came directly from building material and garden supply stores. Although Home Depot announced that it was planning to hire 80,000 seasonal workers this year, the cold weather throughout the country during the month of March has surely pushed the hiring dates back.  

Another big loser today was Coca-Cola , as shares fell 1.13%. The soft drink king is up 10.57% since the start of 2013, but lagging behind the Dow’s 11.15% gain year to date. Shares recently set a new 52-week high, and are still within striking distance of that mark, even after today’s decline. Shares remain reasonably priced at 20 times past earnings, or 17 times expected earnings, and some consider the company’s 2.8% dividend yield just as safe as treasury yields.

Coca-Cola’s wide moat has helped provide its shareholders with superior gains in the past, but the company faces some new threats to its continued market dominance. The Motley Fool recently compiled a premium research report containing everything you need to know about Coca-Cola. If you own or are considering owning shares in the company, you’ll want to click here now and get started!

…read more

Source: FULL ARTICLE at DailyFinance

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Pepsi Is a Top Dividend Stock

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By Dan Caplinger, The Motley Fool

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Investors have always been interested in stocks that pay dividends, but lately, low interest rates on bonds and other fixed-income investments have made solid dividend payers even more valuable. Among the most promising dividend stocks in the market is PepsiCo , and one big reason is that it is one of the few exclusive companies to make the list of Dividend Aristocrats. In order to become a member of this elite group, a company must have raised its dividend payouts to shareholders every single year for at least a quarter-century. Only a few dozen stocks manage to make the cut, and those that do tend to stay there for a long time.

Some see PepsiCo only as an also-ran in the soft-drink market, perennially lagging behind Coca-Cola. But even though Coke has the No. 1 brand in the world and a much bigger presence in the pure beverage market, PepsiCo’s snack-foods division gives it a vital source of diversification and growth that fits extremely well with its extensive distribution network. Let’s take a closer look at PepsiCo to see whether it can sustain its long streak of rewarding dividend payouts to investors.

Dividend Stats on PepsiCo

 

  

Current Quarterly Dividend Per Share

$0.5375

Current Yield

2.7%

Number of Consecutive Years With Dividend Increases

41 years

Payout Ratio

54%

Last Increase

May 2012

Source: Yahoo! Finance. Last increase refers to ex-dividend date.

Has PepsiCo been perking investors up lately?
PepsiCo isn’t just a dividend giant; it also stands as one of the 25 best companies in America, with its dedication to workers, customers, and shareholders. A key driver for PepsiCo’s status among the nation’s industry leaders is its strategic vision, with CEO Indra Nooyi having been early to realize that trends toward greater awareness of health and nutrition would give PepsiCo an opportunity as an early adopter of healthier products. In light of the concerns about obesity and diabetes that have hit PepsiCo, Coke, and other players in the soft-drink industry, Nooyi’s foresight has proven invaluable in giving the company a head start on diversifying its product base, and responding proactively to changing demand.

In addition, PepsiCo has realized the importance of having an image as an innovative company. A big marketing push on its core brands helped boost sales substantially during the fourth quarter of 2012, and the company has positioned its new Kickstart sparkling caffeinated juice blend to go up against Monster Beverage and other big players in the energy-drink space. Expanding geographically has also been a key source of growth for Pepsi, with success in Russia and ongoing plans to bolster its presence in China and India representing important strategic moves for the company.

PepsiCo Dividend data by YCharts.

As you can see, PepsiCo has managed to keep its payouts strong over the years. Yet, like any company with a decades-long track …read more

Source: FULL ARTICLE at DailyFinance

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3 Stocks for an Income Investor's Roth IRA

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By Nicole Seghetti, The Motley Fool

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The Roth IRA contribution deadline is looming. With less than two weeks left, it’s time to fund your account if you haven’t already done so. Let’s quickly review why a Roth IRA is so critically important in saving for your retirement. Then we’ll look at three great stocks for a dividend investor’s Roth.

Best bang for your buck
Your most powerful way to save for retirement is a Roth IRA. It allows after-tax contributions in exchange for tax-free income in retirement. If you haven’t made your contribution for 2012, you have until the tax-filing deadline to do so. If you’re under age 50, you can fork over $5,000 into a Roth. If you are age 50 or older, you can contribute an additional $1,000.

If you’re flush with cash, strongly consider getting a jump on your 2013 contribution. The limits are more generous — $5,500 if you’re under age 50. If you’re 50 or older, you can still contribute that additional $1,000.

But keep in mind that some individuals are excluded from contributing to a Roth. If you’re a high-wage earner, familiarize yourself with Roth eligibility requirements before contributing.

Stock ideas for the dividend investor
For income-desiring investors, there are many solid dividend-paying stocks trading at good buys in today’s market. I’ve found three companies with competitive positions whose stocks boast strong dividend yields and attractive valuations. They each have forward price-to-earnings ratios less than the S&P 500’s current P/E of 18. And while the average dividend yield of S&P 500 companies is 1.9%, these companies pay yields greater than the market.

Illinois Tool Works
This Illinois-based manufacturer will likely benefit as spending ramps up in transportation and construction, two industries that make up a healthy portion of the company’s revenue. Illinois Tool Works holds nearly 20,000 patents, indicating a successful history of innovation. The century-old company boasts a forward price-to-earnings ratio of 13 and a 2.5% dividend yield. 

US Bancorp
A top holding of Warren Buffett’s Berkshire Hathaway, it’s what US Bancorp has avoided that makes it appealing for investors: The bank didn’t aggressively lend to the extent of its too-big-to-fail counterparts. The conservative nature of this regional bank has helped it return healthy shareholder value during the past several decades. The stock pays a 2.3% dividend yield and boasts a forward P/E ratio of 10. 

Coca-Cola
Another Berkshire Hathaway favorite, Coca-Cola dominates Interbrand’s “Best Global Brand” list, having secured its top-spot status every year since the list’s inception. With its beloved and blockbuster brand, the company enjoys fantastic margins and robust sales growth despite global economic headwinds. As a tasty bonus for shareholders, Coca-Cola pays a 2.8% dividend yield, which it’s increased for 50 consecutive years.

Foolish bottom line
The Roth IRA contribution deadline is fast approaching. So, don’t miss your opportunity to fund a retirement account and secure your financial future. Consider these three great dividend-paying stocks for your contribution dollars today.

Coca-Cola has …read more

Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

What Monetary Policy Means for Your Investments

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By Dan Caplinger, The Motley Fool

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For years, commentators have endlessly talked about the accommodative monetary policy that the Federal Reserve has provided to try to boost the U.S. economy. But for most investors, it’s hard to figure out exactly what monetary policy is, let alone how it affects them and their money.

In order to understand monetary policy, the natural first place to get information is from the Federal Reserve itself. Using its resources, let’s take a look at how the Fed uses various tools to implement and manage the role that money pays in the economy.

The Fed and you
For 100 years, the Federal Reserve has had the power to implement monetary policy. As it describes its role, the Fed traditionally uses three different tools to “influence the availability and cost of money and credit to help promote national economic goals.” The discount rate that the Fed sets establishes terms under which banks can borrow funds on an overnight or in some cases seasonal basis, but because the rate is typically above prevailing market rates, banks tend to take advantage of the Fed’s discount window only as a last resort. In addition, the Fed’s reserve requirements force banks to keep a certain percentage of deposits and other liabilities on reserve at the Fed.

The Fed’s most important monetary tool lately, however, has been its open market operations. Before the financial crisis, the Fed tended to buy and sell primarily short-term securities in an effort to maintain the supply and-demand dynamics that affect the federal funds rate. After setting a fed-funds target, the Fed typically used what’s known as repurchase and reverse repurchase agreements to influence trading in the federal funds market to keep market conditions from disrupting its monetary policy and keep the actual fed funds rate near its target. These temporary open market operations fine-tuned rate levels effectively.

More recently, though, the Fed’s open market operations have included massive asset purchases that have targeted longer-term rates. By spending hundreds of billions of dollars on purchasing long-term Treasury bonds and mortgage-backed securities, the Fed has tried to keep long-term rates low in order to spur businesses to make investments that boost economic activity and create jobs.

Does monetary policy help you or hurt you?
The impact of the Fed’s rate policies largely depends on whether you’re a net saver or a net borrower. Savers have seen the rates of safe investments like bank CDs and Treasury bonds plunge as a result of the Fed’s actions, leading many of them to make more aggressive investments in riskier assets to generate income. But borrowers have been able to take advantage of favorable rates to lock in cheaper financing costs that increase profits.

For corporate borrowers, the impact of monetary policy has been huge. Last November, top-rated corporate issuer Microsoft was able to borrow money for five years at less than 1%. More recently, Disney and Coca-Cola were able to issue <a target=_blank …read more

Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

3 Buy-Now Stocks From the "World's Greatest Retirement Portfolio"

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By Brian Stoffel, The Motley Fool

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A full 23 months ago, I started identifying 10 companies that I would be putting $40,000 of my own retirement money behind. This was, has been, and will continue to be my way of helping the world to invest better.

Since then, that sum of money has grown to $50,960 — a 27.4% increase and $1,320 better than if I had just invested the money in the S&P 500.

Every month, I look over these stocks to see which three are tempting. I call these my “Buy Now” stocks because I think they’re pretty good deals. Read the chart below to see how the whole portfolio has performed, check out my best buys, and at the end I’ll offer up access to a special premium report on one of the 10 stocks that’s been floundering lately.

Company

Publication Date

Change

Vs. S&P 500

Google 

6/26/11

64.4%

38

Pricesmart 

6/28/11

56.7%

31

Baidu *

9/15/12

-20.8%

(44)

Intuitive Surgical

7/25/11

22.4%

1

National Oilwell Varco

7/28/11

-11.8%

(37)

Coca-Cola 

6/21/11

28.1%

3

Whole Foods

7/5/11

40.3%

19

Amazon 

7/12/11

26.1%

3

Apple 

6/30/11

33.8%

11

Johnson & Johnson 

8/1/11

34.7%

8
       

Source: Fool.com. All numbers accurate as of market close March 31, 2013. *Returns are for position in ATVI held from July 15, 2011, to Sept. 9, 2012, and transferred over to BIDU on Sept. 15, 2012.

Baidu
First on my list of best buys is a company that’s been a mainstay on here: Chinese search engine giant Baidu. To be honest, anyone following this portfolio is probably tired of hearing my reasoning for thinking Baidu is such a great stock at this price, so — at the risk of exposing myself to big-time confirmation bias — here’s a sampling of other Fool analysts who have been singling the stock out.

  • Just this week, Fool Daniel Sparks called Baidu out as one of two stocks to buy this month, saying: “Baidu’s substantial investments in research and infrastructure promise to create more opportunities.” 
  • Fool Dan Caplinger called Baidu his one stock to buy in April, reminding investors: “Baidu has expansion plans beyond China, and its prospects for picking up market share in other lucrative emerging Internet markets look bright.” 
  • And technology guru Andrew Tonner called Baidu the best value in all of technology, saying: “Every so often the stock market does investors a real favor and that’s the case with Baidu.”  

I don’t point these three out to say, “See? I’m right!” Rather, as I myself am running out of new reasons to say the stock‘s a buy, I’m offering some other opinions, all voiced within the past two weeks.

National Oilwell Varco
In a perfect world, we’d be able to use the energy the sun gives us to meet our wants — that’s the way it worked …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

The Biggest Challenge for Today's Retirees

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By Dan Caplinger, The Motley Fool

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Today’s retirees are having to deal with unprecedented challenges. In this edition of our Motley Fool Conversations series, Fool personal finance expert Dayana Yochim and retirement-planning analyst Dan Caplinger discuss the difficulties that retirees are having in generating enough income to pay for basic living expenses.

Dan and Dayana discuss how low interest rates have surprised retirees, who until now depended on the income from bank CDs, bonds, and other fixed-income investments to bridge the gap between their spending and what Social Security and private pensions provide them in monthly income. Dayana points out that many retirees are taking on debt as a result of their income shortfall, and given their limited prospects to raise their incomes, retirees face long odds in getting their debt paid down without selling major assets like their homes.

Dan goes on to talk about how important it is for near-retirees to consider carefully when to take Social Security benefits. Although you can take benefits as early as age 62, waiting to take benefits later will increase your monthly check, with payments maxing out for those who start taking Social Security at age 70. Given that life expectancies are rising, taking a long-term investing approach is smarter than simply maximizing current income. Dan notes that the current income and growth potential of dividend stocks, especially conservative consumer-products companies, can help achieve both goals.

Coca-Cola‘s wide moat has helped provide its shareholders with superior gains in the past, but the company faces some new threats to its continued market dominance. Does Coca-Cola still make a smart stock for retirement portfolios? The Motley Fool recently compiled a premium research report containing everything you need to know about Coca-Cola. If you own or are considering owning shares in the company, you’ll want to click here now and get started!

var FoolAnalyticsData = FoolAnalyticsData || []; FoolAnalyticsData.push({ eventType: “TickerReportPitch”, contentByline: “Dan Caplinger”, contentId: “cms.29510”, …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

How Coke Stock Rewards Investors

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By Anders Bylund, The Motley Fool

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Some investors are looking for outsize returns in the short term. Others prefer generous dividend checks. True Fools go for a combination of deep value and nigh-on guaranteed long-term performance. If you’re in either of the last two categories, Coke just might be your favorite stock.

Coca-Cola runs an amazingly boring, predictable, and profitable business that performs well in good times and bad. The stock has absolutely crushed its peers on the Dow Jones Industrial Average over the last five years, whether or not you reinvested dividends along the way. That being said, one of Coke’s main attractions is its dividend, which just about doubled its stock returns across this period:

KO data by YCharts.

What if you stretch your investing horizon to decades, rather than a few measly years? The performance delta only grows larger:

KO Total Return Price data by YCharts.

And this is where the magic happens. Coke’s unimpeachable brand and flawless execution helped the company more than double sales in the last 10 years. Free cash flow jumped 104%, allowing management to increase dividend payments by 154%. Coke stock followed suit with a 165% dividend-adjusted climb.

KO Total Return Price data by YCharts.

Coke shares are bound to perform, come hell or high water. Past performance is no guarantee of future returns, of course, but the Atlanta-based beverage giant comes close to that unreachable ideal.

Coca-Cola’s wide moat has helped provide its shareholders with superior gains in the past, but the company faces some new threats to its continued market dominance. The Motley Fool recently compiled a premium research report containing everything you need to know about Coca-Cola. If you own or are considering buying shares in the company, you’ll want to click here now and get started!

var FoolAnalyticsData = FoolAnalyticsData || []; FoolAnalyticsData.push({ eventType: “TickerReportPitch”, contentByline: “Anders Bylund”, contentId: “cms.29489”, …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

The "World's Greatest Retirement Portfolio" Continues to Outperform

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By Brian Stoffel, The Motley Fool

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It’s been almost 23 months since I introduced the World’s Greatest Retirement Portfolio to Foolish readers. This was, has been, and will continue to be my way of helping the world to invest better. Putting my money where my mouth is, I pledged to put at least $4,000 behind each stock and attempt to hold each one for at least three years — though I’ve already broken that promise. 

Since I began, the market has returned 24.1%, which is pretty darn good by historical measures. Though this portfolio has been outperforming the market by double digits for well over a year now, it is currently ahead by just 3.3 percentage points.

Read below to see why the margin between the two is narrowing, and at the end, I’ll offer up access to a special premium report on one of these 10 companies.

Company

Publication Date

Change

Vs. S&P 500

Google 

6/26/11

64.4%

38

PriceSmart

6/28/11

56.7%

31

Baidu 

9/15/12

(20.8%)

(44)

Intuitive Surgical

7/25/11

22.4%

1

National Oilwell Varco 

7/28/11

(11.8%)

(37)

Coca-Cola

6/21/11

28.1%

3

Whole Foods 

7/5/11

40.3%

19

Amazon.com 

7/12/11

26.1%

3

Apple 

6/30/11

33.8%

11

Johnson & Johnson

8/1/11

34.7%

8
       

Source: Fool.com. All numbers accurate as of market close March 31, 2013. *Returns are for position in ATVI held from July 15, 2011, to Sept. 9, 2012, and transferred over to BIDU on Sept. 15, 2012.

One company that can’t catch a break
More or less, the companies in this portfolio didn’t perform terribly during the month of March, they just weren’t able to keep pace with the S&P 500, which climbed over 3% during the month. That wasn’t the case, however, for Intuitive Surgical , maker of the da Vinci surgical robot.

I’ve covered the stock’s dive already, but there are three simple events that caused the stock to drop. First, the Journal of the American Medical Association questioned the need for robotic hysterectomies. Second, the FDA announced it was investigating a rise in the company’s incidents reports. Finally, the president of the American Congress of Obstetricians and Gynecologists publicly echoed the concerns raised in the JAMA article.

Three companies having a good month
Even though the portfolio as a whole isn’t leading the market by quite as much, three stocks had a relatively good March.

Shares of Latin American club wholesaler PriceSmart  were up 5%. This came on the heels of the announcement that the company’s net sales increased 7.8% during the month of February, which included an impressive 8.9% increase in same-store sales. PriceSmart also announced it has acquired land in Tegucigalpa, Honduras, to open up its third store in the country. 

The total return from my investments in Coca-Cola and Johnson & Johnson also increased markedly during March. Part of this was due to the fact that Coke issued its quarterly dividend …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

The Coca-Cola Company Tips off an Epic Celebration as NCAA® Men's Final Four® Takes to the Company's

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By Business Wirevia The Motley Fool

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The Coca-Cola Company Tips off an Epic Celebration as NCAA ® Men’s Final Four ® Takes to the Company’s Hometown

Coke Zero and POWERADE Take Center Court in NCAA March Madness ®

ATLANTA–(BUSINESS WIRE)– Coca-Cola is ensuring college basketball fans experience a full court press of entertainment during the 2013 NCAA® Men’s Final Four® weekend. By merging the power of sports, music and entertainment, Coca-Cola will be hosting larger-than-life events for fans of all ages to experience during the NCAA® March Madness® celebrations -which is happening in the hometown of the Company’s global headquarters.

Two of the Company’s most well-known brands will be at the tournament’s epicenter – Coke Zero and POWERADE. From Bracket Town Refreshed by Coke Zero to the NCAA® Final Four Dribble Fueled by POWERADE, there are tons of opportunities to “Enjoy More Madness” courtesy of The Coca-Cola Company.

“We’re thrilled the passion and energy of the NCAA® Men’s Final Four is coming to our hometown. It’s one of the most exciting times in all of college sports,” said Sharon Byers, senior vice president, entertainment and sports marketing, Coca-Cola North America Group. “It’s just as much about the family-fun, outdoor activities, music and entertainment experiences that surround the tournament as it is the games themselves. The Coca-Cola Company is committed to making Final Four weekend legendary for the city of Atlanta and all those who are here to join in the fun.”

Coca-Cola is the longest-standing Corporate Champion of the NCAA®. Coke Zero is the official fan refreshment of the NCAA® and POWERADE is the official sports drink of the NCAA®.

Bracket Town™ Refreshed by Coke Zero (April 5 – 8) – Coke Zero presents this fan festival at the Georgia World Congress Center. A haven for sports fans of all ages, Bracket Town will offer a chance to meet legendary coaches and players, sign up for daily youth clinics and participate in many different sport activities. While you’re there, check out the Coke Freestyle Machine located at Coke Zero Court. Bracket Town Refreshed by Coke Zero is open to the public beginning Friday, April 5, through Monday, April 8. Tickets are on-sale at the door and range from $6 (kids under 11) to $10 (adults 12+).


CONAN
 Live from the Tabernacle (April 1 – 4) – …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Winning Stocks: Rarer Than You Might Think

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By Morgan Housel, The Motley Fool

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Can you pick winning stocks? Yes. Many have done it. 

But winning stocks may be rarer than some think, especially over long periods of time.

In this video, Fool analysts Matt Koppenheffer and Morgan Housel share some data showing the returns of 3,000 stocks over a 28-year period. There were plenty of winners — but a whole lot of utter losers, too. Have a look:

The Motley Fool’s chief investment officer has selected his No. 1 stock for the next year. Find out which stock it is in the brand-new free report: “The Motley Fool’s Top Stock for 2013.” Just click here to access the report and find out the name of this under-the-radar company.

The article Winning Stocks: Rarer Than You Might Think originally appeared on Fool.com.

Morgan Housel owns shares of Altria Group. The Motley Fool recommends Apple and Coca-Cola. The Motley Fool owns shares of Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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Source: FULL ARTICLE at DailyFinance